Business / Local
De-industrialisation of Bulawayo worrisome
06 Jun 2011 at 07:04hrs | Views
The Zimbabwean economy is under threat as the country's industrial hub is facing massive de-industrialisation, with some firms in the textiles, milling and manufacturing sectors scaling down operations while others are shutting down.
With the rate at which firms are closing down or scaling down operations in Bulawayo, stakeholders believe the 9,3% growth rate this year is now under threat if measures are not put in place to address the constraints.
The growth of the country's economy is hinged on the performance of the mining and other productive sectors of the country's economy, complimented by sound economic policies that promote expansion and intra-regional trade.
Stakeholders believe the firms in Bulawayo, like in other parts of the country, have been adversely affected by the unavailability of long term loans and unviable tariffs, among other factors.
National Economic Consultative Forum spokesperson, Mr Nhlanhla Masuku said economic challenges that have affected the country in the last decade made it impossible for the City of Kings to address the problem of erratic water supply, which remain a major challenge bedeviling industrial activities.
"The industrial challenges facing Bulawayo began a decade ago following erratic supply of water hence the coming on board of the Zambezi Water Project to ensure that manufacturing companies are adequately supplied with water is part of the solution to the challenges," said Mr Masuku.
Figures from the Ministry of Industry and Commerce indicate that 75 companies operating in Bulawayo have relocated or closed shops in the past two years, with 46 being in the motor industry, 24 in the clothing industry and one pharmacy.
National Foods, Hunyani and StarAfrica have already moved to Harare.
Zimbabwe National Chamber of Commerce Deputy President, Mr Oswel Binha said viability constraints are the major drivers of industrial challenges.
He however expressed optimism that the forthcoming industrial development policy will address some of these challenges.
Bulawayo is strategically positioned in terms of reaching new markets such as South Africa and Botswana, complimented by good road and rail infrastructure.
As a result, analysts say no business person would opt out of the city but the shutting down of industries shows how illegal sanctions have affected the country's economy.
With the rate at which firms are scaling down operations, economic commentator, Mr Danny Musukuma said there is need for immediate solutions to the challenges rather than long term measures, adding that the Ministry of Industry and Commerce should show its relevance to the economic matrix.
Economists say if the de-industrialisation of Bulawayo goes unabated, then the growth targets will be missed.
With the rate at which firms are closing down or scaling down operations in Bulawayo, stakeholders believe the 9,3% growth rate this year is now under threat if measures are not put in place to address the constraints.
The growth of the country's economy is hinged on the performance of the mining and other productive sectors of the country's economy, complimented by sound economic policies that promote expansion and intra-regional trade.
Stakeholders believe the firms in Bulawayo, like in other parts of the country, have been adversely affected by the unavailability of long term loans and unviable tariffs, among other factors.
National Economic Consultative Forum spokesperson, Mr Nhlanhla Masuku said economic challenges that have affected the country in the last decade made it impossible for the City of Kings to address the problem of erratic water supply, which remain a major challenge bedeviling industrial activities.
"The industrial challenges facing Bulawayo began a decade ago following erratic supply of water hence the coming on board of the Zambezi Water Project to ensure that manufacturing companies are adequately supplied with water is part of the solution to the challenges," said Mr Masuku.
Figures from the Ministry of Industry and Commerce indicate that 75 companies operating in Bulawayo have relocated or closed shops in the past two years, with 46 being in the motor industry, 24 in the clothing industry and one pharmacy.
Zimbabwe National Chamber of Commerce Deputy President, Mr Oswel Binha said viability constraints are the major drivers of industrial challenges.
He however expressed optimism that the forthcoming industrial development policy will address some of these challenges.
Bulawayo is strategically positioned in terms of reaching new markets such as South Africa and Botswana, complimented by good road and rail infrastructure.
As a result, analysts say no business person would opt out of the city but the shutting down of industries shows how illegal sanctions have affected the country's economy.
With the rate at which firms are scaling down operations, economic commentator, Mr Danny Musukuma said there is need for immediate solutions to the challenges rather than long term measures, adding that the Ministry of Industry and Commerce should show its relevance to the economic matrix.
Economists say if the de-industrialisation of Bulawayo goes unabated, then the growth targets will be missed.
Source - Byo24News
